TEL-LAW tape number 7302:
Rent Increases

brought to you by the Oregon State Bar and your local bar association.
This is Tel-Law tape number 7302, Rent Increases, brought to you
by the Oregon State Bar and your local bar association. The material
presented is intended to alert you to possible legal problems
and solutions.

This tape will discuss the procedures a landlord must use in order
to increase rent in residential dwelling units. Included in the
discussion will be rent raises in most private residential dwellings,
in manufactured dwelling and floating home facilities, and finally
in subsidized housing.

Most tenants in Oregon live under month-to-month rental agreements,
in which the tenant pays rent once a month and the agreement continues
indefinitely until either the landlord or the tenant decides to
end it. In such month-to-month tenancies, the landlord may increase
rent by giving the tenant at least 30 days notice in writing of
the rent increase. A rent increase may take effect any time during
a month. The rent for a month during which the rent increase takes
effect would be prorated. Unless the tenant can show that the
rent increase is retaliatory, discriminatory, or imposed in bad
faith, the tenant must pay the new rent.

If the tenant pays rent weekly instead of monthly, and the term
of the rental agreement is indefinite, the landlord must give
the tenant seven days written notice of a rent increase.

A landlord and a tenant may agree to enter into a rental agreement
for a definite period of time, instead of establishing a month-to-month
or week-to-week tenancy. A rental agreement for a fixed term is
called a lease. Usually, the lease will establish the amount of
rent the tenant must pay while the lease is in effect, or the
lease may set forth a method for increasing rents during the term.
Generally, the terms of the lease will control how rent increases
are imposed. At the end of the lease, the landlord and the tenant
are free to negotiate a new lease or to end the relationship.
If there is no new lease, the tenancy turns into a regular month-to-month
agreement at the end of the lease and the month-to-month rules
would apply.

Somewhat different rules apply to rent increases in month-to-month
tenancies in mobile home parks--also called manufactured dwelling
facilities--and floating home facilities. To increase the rent
in such tenancies, the facility landlord must give written notice
to each affected tenant at least 90 days prior to the effective
date of the rent increase. This written notice must specify the
amount of the rent increase, the amount of the new rent, and the
date on which the rent increase becomes effective.

The facility landlord must give each tenant affected by a rent
increase written notice that the landlord or landlord's representative
will be available to discuss the rent increase at a specific time
and place. A tenant association may also request such a meeting.
The requirements for notice and timing of these meetings are quite
detailed, and landlords and tenants may wish to seek further information
about what the landlord must do to comply. Although a rent increase
in a facility is not effective unless the landlord complies with
this law in all respects, nothing in the law requires a landlord
to compromise or reduce a rent increase that the landlord may
otherwise impose.

A facility landlord may not use the procedure just described to
increase rent under a fixed term lease unless the lease specifically
allows the landlord to do so.

Oregon law generally prohibits cities and counties from enacting
local laws that limit the rents that landlords can charge. However,
the law does allow a state agency or a local government to regulate
rents on residential property for which it has provided benefits
for the purpose of reducing rents for low income tenants. Such
benefits include measures like property tax exemptions and long
term financing.

Subsidized housing landlords must comply with all regulations
and contracts that apply to their property in order to raise the
rents. Tenants in subsidized housing may insist on some evidence
of approval of a proposed rent increase by the government agency
that provides the housing subsidy.

In most government owned public housing and government rent subsidy
programs, tenants generally are required to pay 30% of their incomes
for rent. The amount of household income is generally reviewed
at least once a year, and the tenant may have obligations to report
increases or decreases in income to the public housing authority
and/or to the landlord.

Under the federal Section 8 rent subsidy program, a landlord agrees
to rent a dwelling unit to a low income tenant, who pays approximately
30% of income for rent. The remainder of the rent is paid by the
public housing authority. The landlord's right to raise the total
rent is regulated by the landlord's contract with the housing
authority and by federal regulations. The landlord is prohibited
under the Section 8 program from charging the tenant any rent
in excess of that which the tenant is required to pay under the
lease, which must be approved by the housing authority.

This is a complex and changing area of the law. It is important
that you realize that some of the information on this tape may
be out of date by the time you hear it. This tape is not intended
to be legal advice regarding your particular problem, and is not
intended to replace the work of an attorney. If you do not have
an attorney, the Oregon State Bar Lawyer Referral Service can
assist you. The number to call is 684-3763 or toll-free in Oregon,
1-800-452-7636. They will help you contact a lawyer who can advise
you.

The foregoing text is a transcription of a Tel-Law transcript that
you can hear by calling 503-620-3000 or toll free (in oregon only)
at 1-800-452-4776. OLA brings this transcription to you with the
cooperation of the Oregon State Bar. this script is based on Oregon
law, produced by volunteer lawyers as a public service. The law
of other states may be different. Also, the information may be
out of date. OLA encourages you to seek an attorney before relying
upon this information.